Business World Online
Posted on September 21, 2011 11:06:24 PM
TWO FIRMS in the energy industry have moved to expand operations with one transmission firm seeking to take on a network in Cebu while an exploration company ties up with a consultant for renewable energy projects.
National Grid Corporation of the Philippines (NGCP) wants to buy P216.2 million worth of transmission assets belonging to the Cebu Energy Development Corp. (CEDC), an official filing showed.
NGCP submitted a petition to the Energy Regulatory Commission (ERC) to “immediately issue a provisional approval authorizing NGCP to acquire the CEDC assets.”
The assets involve CEDC’s 138-kilovolt switchyard, the Calung-Calung transmission line, a transformer, four circuit breakers and the lot where the switchyard lies.
“Considering that the CEDC assets play a very vital role in the configuration of the Visayas grid, its reliability and security must always be ensured,” NGCP said.
It further argued that the Cebu-based firm lacks the necessary resources, and expertise to maintain the assets.
If the transaction is not approved, “the transmission system in Panay Island will continue to be at risk,” NGCP warned.
NGCP already operates the country’s power transmission system and is authorized by the Electric Power Industry Reform Act of 2001 to buy transmission assets.
Generation firms like CEDC, which is part of the Metrobank Group, are allowed to build their own transmission facilities but are required to turn over such assets to National Transmission Corp. (TransCo) for competitive purposes.
The NGCP took over operations of the national electricity grid from TransCo in 2008 when it was privatized by the government.
The NGCP consortium is composed of the State Grid of China (40%), Monte Oro Grid Resources Corp. (30%) and Calaca High Power Corp. (30%). Sy-led One Taipan Holdings Corp. bought out Monte Oro Resources in March last year.
Meanwhile, Basic Energy Corp. yesterday said it has partnered with Altus Transactional Services “for a joint development of business opportunities in renewable energy projects, through their respective networks in the international energy business.”
“Altus… will seek to identify third parties with financial capabilities to invest in mutually identified projects either on an equity basis or via project financing,” Basic Energy said in a disclosure to the local bourse.
This was after Basic Energy said it had signed with another firm, Prime Energy, to develop oil and gas projects.
Aside from its oil and gas projects, Basic Energy is into the exploration and development of renewable energy resources, such as geothermal energy, biomass and hydropower.
Altus, for its part, “has an extensive expertise in providing a wide variety of strategic consulting services to clients throughout Southeast Asia.”
It provides structured finance services, public sector advisory services and small business services to its clients.
Shares of Basic Energy closed at P0.28 apiece yesterday, unchanged from the previous day. -- Emilia Narni J. David
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